“Fintech” (short for financial technology) isn't just a buzzword — it's a digital sidekick. Gone are the days of loose change and piggy banks, instead, we're in the era of digital wallets, robo-advisors, and the occasional rendezvous with crypto. Innovations in Fintech are reshaping our lives — and for students, Fintech often drives our cash-conscious college existence. As Generation Z grows up and takes charge of their finances, the world of Fintech has been evolving alongside us. However, with this rapid evolution comes a myriad of questions: how effective has the Fintech world been in tapping into this growing market? What does this mean for Gen Z consumers? What will Fintech look like in the future?
The answers to these questions vary and will continue to change as innovation gives rise to further developments. However, the most successful Gen Z Fintech companies truly understand their users and unapologetically strive to create value for young consumers.
What is Fintech?
Fintech merges the worlds of finance and technology to create a diverse range of digital innovations designed to enhance financial services. Some Fintech solutions are geared towards enterprises, fulfilling and automating complex procedures like processing customer payments. For most Gen Z users, Fintech plays a more prominent role in personal lives — from paying for your morning coffee to investing your money. You might use things like the tap-to-pay digital wallet on your phone, or split dinner with a friend using Venmo. In these cases, Fintech leverages technology to redefine traditional processes, making them more efficient and accessible.
Players in the Fintech world are increasingly attracted to Gen Z’s comparative openness to online finance solutions and hope to tap into the 60% that use mobile payment apps and 57% using investment apps. Gen Z wields an estimated $140 billion in spending power, and 51% name a Fintech company as the financial institution they trust most. But as this market grows, Fintech companies are tasked with finding the best ways to draw in and retain younger demographics.
Meet Frich: a Fintech App with a Unique Approach to Gen Z
The best place to learn about Fintech companies' Gen Z-centric methods is directly from the source. Frich is the “First Social Finance App for Gen Z,” aiming to pave the way for financial technology built for the specific needs of Gen Z consumers. Aleksandra Medina, co-founder of Frich and NYU alumni, describes it as a “by Gen Z, for Gen Z” app that built its personalized style, branding, and features based on direct observation. In an interview with The Venturist, Medina conveyed her own experience with her finances as a young person in New York, noting “It was kind of on my own shoulders to figure it all out by myself.” Medina and her co-founder saw this sentiment echoed by fellow Gen Z, but they were struck by the disconnect between the issue’s widespread nature and how it was so quietly discussed: Medina says, “I thought it was ridiculous that it was so taboo to talk about money.” Thus, Frich was born to equip Gen Z with greater confidence in their finances while providing a quirky combination of fun and resource-driven results.
How Companies like Frich Attract Gen Z Consumers
As companies pursue a deeper understanding of younger customer demographics, successful Fintech platforms have identified many ways to capture their attention. Frich and other companies utilize methods like hyper-personalization, branding, and gamification to both initially attract users and continue retaining them long-term.
Hyper personalization helps Fintech companies ensure that their product caters to the individual needs of the consumer rather than the group at large. Talking about Frich’s focus on personalization, Medina emphasizes the importance of connecting with the audience personally. When working with Gen Z especially, she says that some of Frich’s strength “...comes from a personal pain and personal experience.”
Frich incorporates multiple features that provide a highly personalized and uniquely valuable Fintech solution. Users can link their bank accounts to get a dollar-by-dollar picture of their financial life. Frich compares your data with others, allowing you to understand how you perform in comparison to your peers — for example, how much more you spend on coffee vs. other young professionals, or how you might be saving extra on groceries. Additionally, Frich offers resources and peer-reviewed perks catered toward users’ financial goals and insights derived from their linked data. Medina cites that this depth of personalization allows users to “...see other people’s journey and follow that as a blueprint,” enabling customers to get the most rewarding experience from using the app.
Branding and personality also appear to play a large role in Fintech for Gen Z. Medina echoes its importance at Frich. When asked what was integral to aspects of her company’s great success, she said “The power of the brand, I wouldn't underestimate that.” Many Fintech tools aim for modern user interfaces that are easy to navigate, catering to the 70% of Gen Z who prefer customizable and intuitive app designs. Bold colors, casual language, and sometimes even AI-generated dialogue are used to personify Fintech apps to match their users’ energy.
Frich’s user interface is defined by an eye-catching palette of bright colors, bringing a sense of excitement and fun to the app. They use Gen Z slang to put personal finance and its potentially confusing jargon into layman’s terms that are easier to follow and more engaging. Lastly, Frich makes a direct connection with its audience through the popular method of influencer partnerships. The company specifically hones in on student influencers, allowing Gen Z to get their reviews from the demographic that needs Frich’s value-add the most. By incorporating these techniques, Medina says her company aims to “get across that money is a lifestyle thing,” effectively positioning Frich as more of a lifestyle brand than simply a financial tool.
Gamification is on the rise across multiple industries, and it's no different in the Fintech world. Gamification is the art of incorporating game-like elements (such as challenges, rewards, and interactive features) with non-game contexts such as personal finance. Using this method enhances user engagement, capturing attention for longer and making it more fun to interact with a platform’s content. It often takes on many forms, including quizzes and lotteries — and these methods take the stage as major selling or retention points in Gen Z-focused Fintech companies.
Frich is an example of a company using unique methods of gamification. The app folds in the serious nature of personal finance with the quirk and fun that defines many of Gen Z’s interactions with pop culture. While developing their strategies and features, Medina stated that they explored the cultural shift in Gen Z: “Influencers, COVID, trends that require personal information sharing, etc. have normalized being more blunt and honest.” Frich incorporates this finding with a “Question of the Day” technique that not only increases user engagement through an initial hook but also establishes a strong personality for the platform. Every day, users are asked a new question that encourages reflection on “taboo” money topics. Daily prompts range from “Have you ever dined and dashed?” to Venmo etiquette and credit-building strategies. “They start the conversation,” Medina says, “[the questions] say what is too awkward to ask but is in the back of your mind.”
Users return to new questions daily and are motivated by potential rewards through Frich’s partnerships with other brands. As they re-enter the app and continue to compare their peers’ answers with their own, Frich holds onto users long-term while also helping them address the uncomfortable areas of personal finance in a much more light-hearted way.
After exploring these strategies in Fintech, we now return to the question: what do these trends, exhibited by Frich and similar Fintech companies, mean for Gen Z consumers? This evolving landscape goes beyond simply adopting new digital tools; it signifies a fundamental shift in how young users interact with and perceive their financial world. It's not just payments, budgets, and financial planning — truly successful Fintech companies have recognized how personalization and engaging features resonate with their Gen Z customers.
Companies like Frich have understood the pulse of younger demographics, infusing relatability and personality into their products to decrease the level of detachment that comes from a generalized experience. The rise of gamification, seen in many emerging Fintech platforms, transforms the financial journey into a rewarding endeavor, where every routine step contributes to a personal victory.
Beyond being a tool, Fintech companies like Frich position themselves as a companion for Gen Z, breaking barriers to financial management, promoting financial well-being, and guiding users toward their goals. In essence, they transform the often daunting task of managing finances into a more approachable and engaging experience. As Gen Z navigates its ever-evolving relationship with money, Fintech stands as a supportive ally, encouraging financial health and providing personalized guidance on your financial journey.